Bitcoin (BTC) and crypto treasury companies pose comparable dangers as collateralized debt obligations (CDOs), securitized baskets of dwelling mortgages and different kinds of debt that triggered the 2007-2008 monetary disaster, Josip Rupena, CEO of lending platform Milo and former Goldman Sachs analyst, instructed Cointelegraph.
Crypto treasury firms take bearer belongings with no counterparty threat and introduce a number of layers of threat, together with the competence of the company administration, cybersecurity, and the flexibility of the enterprise to generate money circulation, Rupena mentioned. He added:
“There’s this side the place folks take what’s a reasonably sound product, a mortgage again within the day or Bitcoin and different digital belongings as we speak, for instance, and so they begin to engineer them, taking them down a path the place the investor is not sure in regards to the publicity they’re getting.”
Rupena instructed Cointelegraph that whereas he doesn’t anticipate crypto treasury firms to be the reason for the subsequent bear market, overleveraged companies may “exacerbate” a market downturn by means of pressured promoting, however it’s nonetheless too early to inform what the precise results might be.
A number of market analysts have issued warnings in regards to the potential of overextended crypto treasury firms to trigger a market-wide contagion by means of pressured promoting, miserable crypto costs in a rush to cowl money owed.
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Firms diversify into altcoin holdings, leaving market buyers divided
Conventional monetary firms are going past the Bitcoin treasury technique popularized by BTC advocate Michael Saylor and diversifying into altcoin treasuries.
Throughout July and August, a number of companies introduced Toncoin (TON), XRP (XRP), Dogecoin (DOGE), and Solana (SOL) company treasury methods, for instance.
Firms adopting crypto treasury methods have seen combined results on their inventory costs, as markets react to the rising tide of firms pivoting to digital belongings.
Security Shot, a maker of well being and wellness drinks, introduced it might undertake the BONK (BONK) memecoin as its major reserve asset in August, sending shares of the corporate plummeting by 50% on the information.
Equally, the share costs of many Bitcoin treasury companies have slumped within the second half of 2025, as the sector turns into more and more crowded.
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